Bitcoin is currently making bear flag and it is following the age old example of sharp decline on heavy volume followed by weak bounce on declining volume...to quote stock charts,
"It is important that flags and pennants are preceded by a sharp advance or decline. Without a sharp move, the reliability of the formation becomes questionable and trading could carry added risk. Look for volume confirmation on the initial move, consolidation, and resumption to augment the robustness of pattern identification."
We currently have our sharp advance which was confirmed by heavy volume...
I personally believe this flag will break down and we will begin a move into the 7k range with initial targets at 7800,7500 and 7200...HOWEVER this is my personal opinion and I am prone to take very risky trades..I would not encourage anyone to follow me!
If this bounce moves up over 9k I would consider the flag invalid and the short trade shelved....good luck to all and God bless.
Red Boar
"It is important that flags and pennants are preceded by a sharp advance or decline. Without a sharp move, the reliability of the formation becomes questionable and trading could carry added risk. Look for volume confirmation on the initial move, consolidation, and resumption to augment the robustness of pattern identification."
We currently have our sharp advance which was confirmed by heavy volume...
I personally believe this flag will break down and we will begin a move into the 7k range with initial targets at 7800,7500 and 7200...HOWEVER this is my personal opinion and I am prone to take very risky trades..I would not encourage anyone to follow me!
If this bounce moves up over 9k I would consider the flag invalid and the short trade shelved....good luck to all and God bless.
Red Boar
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Note the above EMA AND MA are for the 4 hour chart not daily
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I have given a full update to this idea on a new chart (sorry for so many charts lol)
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Bear flag still holding...although very extended now...here is what is propping us up.
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Another classic bear flag!
Another classic bear flag!